Rafael Holdings to Merge With Cyclo Therapeutics

07:20 AM EDT, 08/22/2024 (MT Newswires) -- Rafael Holdings (RFL) has agreed to merge with Cyclo Therapeutics (CYTH), the companies said Thursday.

Under the terms of the deal, Rafael Holdings will issue class B common shares to Cyclo shareholders, on an exchange ratio valuing Cyclo shares at $0.95 per share and Rafael at its cash value combined with the value of its marketable securities and other investments minus liabilities. The cash value will factor in Rafael's funding of Cyclo operations through closing, the companies said.

Both companies' boards have approved the merger, which is expected to close by Q4.

The companies said they will focus on the development of the drug, Trappsol Cyclo, as a potential treatment for Niemann-Pick Disease Type C1, a rare genetic disease.

Shares of Cyclo fell more than 20% in recent pre-bell activity Thursday, while Rafael was inactive.